Proposal to turn 300 000ha of forest industrial forests for logging

[Guest guest]

The Star

 

Thursday August 11, 2005

 

 

Malaysian, Indian investors look to build Borneo paper plant

 

JAKARTA: A group of Malaysian and Indian investors is considering building a

1.3 billion rupiah pulp and paper plant on the Indonesian side of the Borneo

island, The Jakarta Post reported, quoting Forestry Minister Malam Sambat

Kaban.

 

Kaban said the group also proposed to turn 300,000ha of forest into

industrial forests for logging in either west or central Kalimantan.

 

His office is studying the investment proposal, the minister was quoted as

saying.

 

He said some German investors were also interested in such a plan but had

not filed a proposal.

 

The Jakarta Post said that state revenue from the forestry sector more than

doubled to 1.41 trillion rupiah in the first-half to June from 591.7 billion

rupiah a year ago.

 

The state budget targets a full-year revenue of 2.71 trillion rupiah from

the sector, it said.

 

To this end, the government plans to set aside 414,000ha of forest for

logging permits, The Jakarta Post said.

 

Efforts to boost forestry output comes as the wood processing industry is

complaining about supply scarcity, which is blamed on rampant illegal

logging and smuggling activities.

 

In April, the forestry ministry said illegal logging is costing Indonesia

over 30 trillion rupiah per year.

 

Quoting data from the ministry, The Jakarta Post said Indonesia’s remaining

forest area cover is 40 million ha, of which 2.6 million is lost to

deforestation each year. – AFX-Asia

 

_______________

Block pop-up ads with MSN Toolbar. http://toolbar.msn.com.my/